Cash sales picking up as market begin shifting
Cash sales are increasing in the local market as they are nationwide. But unlike the national tenor, they are not setting all-time highs.
Last month NE Tenn. – SW Va. single-family existing-home sales declined from March and April last year. The median sales price was down from March and up almost 14% from April last year.
According to Attom Data Solutions, cash sales accounted for 39% of sales during the first quarter in the Johnson City metro area and 35.3% in the Kingsport-Bristol metro area. That increased 12% from last year in Johnson City and 18% growth in Kingsport-Bristol.
Nationwide cash sales accounted for 34.2% of Q1 sales, the highest level since Q1 2015 and up 32% from Q4 2021.
Local cash sales were slightly higher they were in both local metros from Q1 2015. They were 8% better in the Johnson City metro area and 3% in Kingsport-Bristol.
NE Tenn. – SW Va. cash sales peaked in 2013 when they accounted for 53.1% of Johnson City sales and 56.7% of Kingsport-Bristol sales.
One noteworthy change in April’s cash sales dynamics was the average difference between the sales and list price. It was $611 above list. That’s the first time that’s happened so far this year. The avg. difference in Jan. was minus $7,552. In Feb., it was $3,953 below list. In April, it was $2,968 below list.
Last month the only sales below the list price were an average $900 discount for USDA loans and three owner-financed sales. The average discount for those sales was $51,655.
NETAR is the voice for real estate in Northeast Tennessee. It is the largest trade association in the Northeast Tennessee, Southwest Virginia region, representing over 1,600+ members and 100+ business partners involved in all aspects of the residential and commercial real estate industries. Weekly market reports and information for both consumers and members are available on the NETAR website at https://netar.us